Senate

Revised Explanatory Memorandum

(Circulated by the authority of the Minister for Social Services, the Hon Christian Porter MP)

Schedule 11 - Removal of intent to claim provisions

Summary

This Schedule will amend the Social Security Administration Act by removing the current deemed claim provisions that allow a claimant to receive payments from the date on which they initially contacted the Department of Human Services.

Background

The deemed claim provisions in relation to a person contacting the Department of Human Services about a claim for a social security payment or concession card are set out under sections 13 and 14 of the Social Security Administration Act.

These provisions allowed leniency for claimants by effectively backdating their entitlement to payment to the date they initially contacted the Department of Human Services and indicated their intention to claim.

These provisions were introduced at a time when claim forms were mailed to claimants, completed by the claimants, and then returned by mail to the Department of Human Services. With the advent of technology that allows people to gather and submit documentation quickly and easily (such as online banking, email, and electronic storage of information), and the progressive rollout of online claiming, this level of assistance is no longer necessary or appropriate.

The purpose of removing these provisions is to encourage claimants to take greater personal responsibility for understanding their payment entitlements, and submit claims in a timely manner.

If this Act receives the Royal Assent before 1 November 2017, the amendments made by this Schedule commence on 1 January 2018.

If the Act receives the Royal Assent on or after 1 November 2017, the amendments made by this Schedule will commence on the first 1 April, 1 July, 1 October and 1 January that occurs after the end of the period of 2 months beginning on the day this Act receives the Royal Assent.

Explanation of the changes

Social Security Administration Act

Item 5 repeals sections 13 and 14 of the Act, which achieves the policy outcome of removing the deemed claim provisions that allow a claimant to receive payments from the date on which they initially contacted the Department of Human Services.

Items 1, 2, 3, 4 and 6 are consequential to the amendments made by item 5, and adjust references to the repealed sections.

Item 7 provides that amendments made by this Schedule do not apply in relation to contacts with the Department of Human Services made prior to the commencement of the amendments.